Just because an idea is good doesn’t mean it’s going to be profitable. That’s why it’s crucial to be critical of your business ideas. Here are some tips from experts to help you determine if you have an effective business idea.
It Solves A Real Problem
According to Dropbox co-founder Drew Houston, the most successful people he knows don’t just love what they do; they’re obsessed with solving real problems that matter to them. As long as people have problems, entrepreneurs like you will never run out of business ideas. Why? Because the best business ideas solve real problems!
It’s Set At The Right Price Point
According to Dr. Rainer Meckes, businesses that get their pricing right will thrive. But those that get it wrong risk damaging their business permanently. Excellent pricing isn’t about being the cheapest, but about how your customers quantify the value your business delivers.
It Has A Considerable Niche Market For It
Market size is a major factor influencing how much your business idea is worth. It tells you the number of potential buyers your business idea could possibly have within a given market, and the total income these sales may generate.
You Are Passionate About It
When you start a business, it’s expected that running it will consume most of your time, money, and energy. So, it’s crucial that you build a business that stems from your passion.
You’ve Tested Your Idea
According to Nancy A. Shenker, president of ONswitch LLC, entrepreneurs can sometimes lose objectivity because they’re so passionate about their business idea. This causes them to head straight to execution without taking the time to validate their idea. Before you spend any money promoting your product or service, it’s essential that you test your business idea with strangers who are representative of your ideal customers – not just people you know who are too polite to tell you the truth.
You Know How To Reach Your Customers
Aside from thinking about the problems your business idea will solve, you should also figure out how you’re going to market it to your intended customers.
Your Idea Is Realistic
According to Mark Suster, realism is important in startups. It’s normal to feel biased toward your own ideas, but romanticizing it will only stop you from truly identifying if your idea will be a big hit or not.
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